Deed of Reconveyance FAQ - United States


A Deed of Reconveyance is a document that transfers title in the real property to the borrower (the Trustor) from the Trustee once the borrower has fully paid the debt secured by a Deed of Trust. In order to clear the Deed of Trust from the title to the property, a Deed of Reconveyance must be recorded with the Country Recorder or Recorder of Deeds. If the Trustee/Beneficiary fails to record a satisfaction within the set time limits, the Trustee/Beneficiary may be responsible for damages as set out by statute.
Who is the Trustor?

The Trustor is the debtor, the purchaser of the property.

Who is the Trustee?

The Trustee is the person or entity holding title to the property for the benefit of the Beneficiary (e.g., title company, escrow company or bank).

Who is the Beneficiary?

The Beneficiary is the person or entity (e.g., the bank) who lent the money to the Trustor to purchase the property.

What is a notary public?

A Notary Public is a state-appointed official who is authorized to authenticate certain legal documents, such as declarations, acknowledgments, deeds, mortgages, and other contracts. Most real estate deeds are notarized by attorneys.

What is the consideration?

The consideration entered on a deed document and it should be the actual value paid by the lender to the borrower in monetary terms. If no consideration is being provided, such as in the case of a gift, then $10.00 can be entered as the standard consideration.

What is the County Recorder's Office?

This office is referred to by different names in different states, such as County's Office, Register of Deeds, or Land Registry Office. It is where documents relating to real property are registered.

Where can I obtain the legal description of my property?

You should be able to obtain the complete legal description of your property from the County Recorder's Office by providing your municipal address or tax parcel number.

What is the tax parcel number or parcel identification and how do I find out what the specific number is for my property?

This number is a 10-12 digit number that identifies ownership and assessed values of property for taxation purposes. The number can be obtained from your Tax Statement, Revaluation Notice, or Personal Property Listing Form.

Why is there a large margin at the top of deed documents?

The County Recorder who will file the document requires a 2-3 inch margin at the top of the document so that they can affix a stamp, filing number or some other form of information to help identify and record the deed. Do not write in this space.

Can I get my document notarized in a different state than where the land is located?

Most states recognize notarization of land transfers by officials from other states, but you should contact the County Clerk's Office where the land is located to be sure that they will allow the document to be notarized in another state. Our documents allow for inter-state notarization by enabling you to select in which state you will have it notarized, regardless of the location of the property.

What do I do with the Deed of Reconveyance after it has been signed before a Notary Public?

After it has been signed and notarized, it should be filed at the land records office in the county where the property is located. This office is referred to by different names in different states, but is usually called the County Clerk's Office, County Recorder's Office, Register of Deeds, or Land Registry Office.

Do I need to have witnesses when I sign a deed?

Currently, only Arkansas, Georgia, Michigan, Ohio, South Carolina, and Vermont require that witnesses sign deeds in addition to a notary public in order for deeds to be valid. However, in some states, specific counties require that deeds be witnessed. You should check with your local county recorder's office to determine if witnesses are required.

How is a Deed of Reconveyance different from a Satisfaction of Mortgage?

A Deed of Reconveyance is a document which transfers title in the property back to the borrower from the Trustee and it is used to acknowledge that the borrower has fully paid what he or she owed under a Deed of Trust. A Satisfaction of Mortgage is used to acknowledge the same of a Mortgage agreement. A Satisfaction of Mortgage is a document signed by a mortgagee acknowledging that a mortgage has been fully paid and that the mortgage is no longer a lien on the property. In order to clear the title to the real property owned by the mortgagor, the Satisfaction of Mortgage document must be recorded with the County Recorder or Recorder of Deeds. If the mortgagee fails to record a satisfaction within the set time limits, the mortgagee may be responsible for damages set out by statute. In essence, the Deed of Reconveyance and Satisfaction of Mortgage both serve the same function, which is to show that the borrower has repaid the loan fully and that the lender has no further interest in the property.

What happens when no Deed of Reconveyance is recorded?

If a purchaser of property pays off the entire debt that he or she owes under a Deed of Trust but no Deed of Reconveyance is recorded, then the debt will still be registered against the property. Even if done later than the statutory required time period, the purchaser should still try to prepare a Deed of Reconveyance. In many states, the lender will face a penalty for not discharging the fully paid Deed of Trust in a reasonable time.

 

Ready to create a free Deed of Reconveyance?
Know someone who could benefit from legal FAQs? Pass this along:
back to top